Best of the Week
Most Popular
1.Putin’s World: Why Russia’s Showdown with the West Will Worsen - John_Mauldin
2. Stocks Bull Market Grinds Bears into Dust, Is Santa Rally Sustainable? - Nadeem_Walayat
3. Gold and Silver 2015 Trend Forecasts, Prices to Go BOOM - Austin_Galt
4.Gold Price Golden Bottom? - Toby_Connor
5.Gold Price and Miners Soar on Huge Volume - P_Radomski_CFA
6.Stock Market and the Jaws of Life or Death? - Rambus_Chartology
7.Gold Price 2015 - EWI
8.Manipulated Stock Market Short Squeezes to Another All Time High - The China Syndrome - Nadeem_Walayat
9.Gold, Silver, Crude and S&P Ending Wedge Patterns - DeviantInvestor
10.Is the Gold And Silver Golden Rule Broken? - Michael_Noonan
Last 5 days
The Price Of Gold And The Art Of War - 18th Dec 14
Euro Succumbs to ECB QE Expectations and FOMC - 18th Dec 14
John Williams: A Downhill Run for the U.S. Dollar in 2015 - 18th Dec 14
Outrage at Taliban Islamic Fundamentalists Massacre of 132 Pakistani School Children in the Name of God - 18th Dec 14
How Inflation Changes Retirement Benefit Choices - 17th Dec 14
The Real Reason It's Tough to Beat the Stock Market - 17th Dec 14
Russian Currency Crisis and Debt Defaults Could Create Contagion in West - 17th Dec 14
How to Profit From Russia's Stock Market Crash - 17th Dec 14
Russia Crisis - If You Put Your Money in the Bank Will You Get it Back? - 17th Dec 14
Crude Oil Price Crash, U.S. Employment and Economic Growth - 17th Dec 14
Opposing Forces At Play In Gold and Silver Precious Metals Complex - 17th Dec 14
Wall Street Will Always Find An Excuse For Not Raising U.S. Interest Rates - 17th Dec 14
Torture, Terror And Elite Schizophrenia In The UK - 16th Dec 14
Eurozone Conflict Will Bring a Major Stocks Buying Opportunity - 16th Dec 14
Viewing Russia From the Inside - 16th Dec 14
Gold and Silver Stocks Bottom - Are We There Yet? - 16th Dec 14
The Financial Industry Pigmen Win Again - 16th Dec 14
Crude Oil Price Epic Blowout - 16th Dec 14
Asian Stocks Markets: Sand In The Gears Of The Bull Market - 16th Dec 14
U.S. Dollar Trend Forecast 2015 - Video - 16th Dec 14
Silver Price Bottom? - 15th Dec 14
Gold Price Base Building Bullish Pattern - 15th Dec 14
Stock Market Probable Pop-n-Crash Today - 15th Dec 14
Stock Market Time for a Bounce - 15th Dec 14
Stock Market Euphoria: The Mother of All Ponzi Schemes - 15th Dec 14
Gold - The Weight of Time as Trend - 15th Dec 14
U.S. Dollar Collapse? USD Index Trend Forecast 2015 - 14th Dec 14
The Rushing Stocks Bear Market and How to Prepare - 14th Dec 14
Gold and Silver Dreaming of a White Christmas - 14th Dec 14
Cyprus-style Bank Bail-ins to Take Deposits and Pensions - The Global Bankers' Coup - 13th Dec 14
How To Renounce Your US Citizenship And Become Stateless - 13th Dec 14
Stock Market Downtrend Underway - 13th Dec 14
Gold And Silver - Wall Street, aka United States, Pulls Off Another Destructive Coup - 13th Dec 14
U.S. Congress Has Guaranteed the Secular Stocks Bear Market is Not Over - 13th Dec 14
Gold and Silver Starting to Show Bullish Signs - 13th Dec 14
Arab Spring II is Coming Fast - The Unintended Consequences of Lower Oil Prices - 13th Dec 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Dramatic Stock Market Selloff

How to Play the Silver Price Rally

Commodities / Gold and Silver 2014 Feb 20, 2014 - 04:06 PM GMT

By: Investment_U

Commodities

Sean Brodrick writes: Silver is rallying sharply this month, up about 14% in the last three weeks and blowing out of its old range. After it closed yesterday at $21.85, I’m confident we’ll see silver test $27 or even $30 by the end of this year.

And that will make a huge difference for undervalued silver producers.


There are three reasons silver is going higher, and some ways you can make money as it rallies.

1. Mom and Pop Are Loading Up

Silver bullion coin sales rose to a record high in 2013. Here’s a yearly chart of U.S. Silver Eagle sales…

The U.S. Mint sold 42.675 million American Eagle silver bullion coins in 2013. That is 26% more than 2012, and it’s a new single-year record for the most purchased since the U.S. Mint began producing the one-ounce silver coin in 1986.

And it’s not just the U.S. Mint that sold a lot of silver coins. Mints in Australia, Austria and Canada have seen booms in silver coin sales of 41% or more.

And the buying continues. Sales of American Eagles are on pace for another record year.

2. Silver ETFs Are Buying, Too

Selling of gold by ETFs was a huge weight on gold prices last year. But silver didn’t see a rush of selling by ETFs. The amount of ounces they held stayed flat.

And now the ETFs are adding to their holdings.

Through February 14 of this year, the major silver-backed ETF products held 631 million ounces. That’s up 100.9% from their holdings at the end 2008.

3. Industrial Demand Is Set to Soar

Industrial demand accounts for more than half of total demand for silver. Smartphones, flat-panel TVs, solar panels, chemical reagents – they all use silver.

My sources say industrial demand for silver could rise 6% in 2014 to a record 511 million ounces. And that’s not including demand for jewelry and other uses.

No Surge in Supply

All this, and yet output from the world’s largest silver producer, Mexico, should remain nearly unchanged this year. China is the world’s No. 2 silver producer, and it’s the same story there. Worldwide, production is only expected to rise slightly in 2014.

In fact, most of the new silver that comes on line isn’t from primary silver producers. Instead, it is as a byproduct of mining for other metals. That puts a lid on production, no matter what the demand.

Individual miners offer a potentially very profitable way to play a rally in precious metals. But be careful; miners can be volatile. There’s one in particular that I’m very high on right now, and since recommending it to subscribers of Oxford Resource Explorer – the premier newsletter for investors in metals, miners and energy – this miner has picked up almost 15%. In fact, investors who took my advice and bought just 15 shares of this miner have already paid for their subscription. We’re about to send the next issue out shortly. To learn how to receive it, click here.

If you’re investing in silver on your own, you may be better off sticking to funds like the iShares Silver Trust (NYSE: SLV) and the Sprott Physical Silver Trust (NYSE: PSLV).

Good investing,

Sean

Source: http://www.investmentu.com/2014/February/nyse-slv-how-to-play-silver-rally.html

http://www.investmentu.com

Copyright © 1999 - 2013 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014